Organizational Culture

Economic Factors

The economy plays a role in our everyday lives. How much money we make, how much money we spend, wants and needs, competitive pricing, etc. are all factors in financial decisions we make on a daily basis. Organizations are also heavily influenced by economic factors. A market crash or a recession will directly impact the sales of an organization. When people are no longer able to afford a product or choose to spend their money elsewhere, companies are directly impacted. On the other hand, companies are affected when the economy is good and people are able to spend or invest more money. Adapting to the changes in the economy and being able to adjust organizational strategies to accommodate for them, is essential to company survival.

License

Icon for the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License

Organizational Behavior by Icfai Business School is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.